Chinese firms in UK post highest growth

Chinese companies in the United Kingdom posted strong financial results last year, with businesses from both countries optimistic about future collaboration, according to a report by the China Chamber of Commerce in the UK.

According to the 2024 Report on the Development of Chinese Enterprises in the UK, which was released Wednesday, around 53 percent of surveyed firms reported being profitable last year, the highest proportion since the chamber started conducting the annual survey in 2020.

More than 92 percent expect their revenue to be stable or even increase in the next two years, and 64 percent are "likely" or "very likely" to collaborate with British partners in the future, the report said.

Minister Yu Benlin of the Chinese embassy in the UK said at the release event, "More Chinese companies are taking the route and thriving in the UK as they deliver new opportunities, offer more choices and most importantly, create tens of thousands of jobs. But it is worth mentioning that Chinese firms still face challenges. Rising business costs, security-related barriers and policy consistency are the main concerns. That's precisely why our governments and business communities need to collaborate more closely."

Yu added, "Last month, the China-UK Economic and Financial Dialogue in Beijing achieved pragmatic outcomes. As we look ahead, implementing the dialogue outcomes is the key that unlocks the full potential of our cooperation."

Fang Wenjian, chairman of the CCCUK and general manager of Bank of China London Branch, said he was encouraged by the UK chancellor of the exchequer's visit to Beijing in January and the recent visit by Chinese Foreign Minister Wang Yi to London, which further consolidated both sides' consensus on areas for cooperation.

"That's really encouraging to business," said Fang, adding that Grant Thornton UK's Tou Ying Tracker report showed 931 large Chinese companies remained very active in the UK market last year, with aggregate revenue close to 100 billion pounds ($126.4 billion) and employing around 57,000 locals.

While noting geopolitics is still the top concern for Chinese firms operating in the UK, Fang said many Chinese companies are willing to choose the UK as their first stop for overseas expansion as the chamber last year welcomed around 50 delegations from China to promote bilateral collaboration in the UK, with a focus on green finance, new energy and biomedicine.

Around 100 leaders of the China and UK business communities attended the event, including Sherard Cowper-Coles, chair of the China-Britain Business Council, and Charles Bowman, former lord mayor of London, who expressed optimism about the future of bilateral economic cooperation.

Gerard Lyons, a British economist and senior independent director at Bank of China (UK), said, "When one looks at the relationship in the context of the cooling periods in recent years, the relationship is certainly warmer. I think on the back of the economic and financial dialogue, there is a lot more reason to be positive about the economic, financial, business and trade aspects."